Is Intel Making a Comeback? Nvidia’s $5 Billion Bet Explained

0:00This is an iHeart Podcast. Guaranteed Human.

0:31Can you hypnotize someone into sleeping with you? Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This season on Dear Chelsea with me, Chelsea Handler, we've got some incredible guests like Kumail Nanjiani. Let's start with your cat. How is she? She is not with us anymore. Okay, great, great, great way to start. Maybe you will cry.

1:13Ross Matthews. You know what kids always say to me? Are you a boy or a girl? Oh my God. All the time. That's so funny. I know. So I try to butch it up for kids so they're not confused. Yeah, but you're butching it up. It's basically like Dora's Day. No, I turn into Bea Arthur. Listen to these episodes of Dear Chelsea on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

1:58I just, damn, that f***er got swag. Listen to the Questlove Show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcast. This episode is brought to you by PNC Bank. A lot of people think podcasts about work are boring. And sure, they definitely can be. But understanding a professional's routine shows us how they achieve their success little by little, day after day. It's like banking with PNC Bank. It might seem boring to save, plan, and make calculated decisions with your bank, but keeping your money boring is what helps you live a more happily fulfilled life. PNC Bank, brilliantly boring since 1865.

2:42Brilliantly boring since 1865 is a service mark of the PNC Financial Service Group, Inc. PNC Bank, National Association, member FDIC. earners what's up you ever walk into a small business and everything just works like the checkout is fast the receipts are digital tipping is a breeze and you're out the door before the line even builds odds are they're using square we love supporting businesses that run on square because it just feels seamless whether it's a local coffee shop a vendor at a pop-up market or even one of our merch partners. Square makes it easy for them to take payments, manage inventory, and run their business with confidence, all from one simple system.

3:26If you're a business owner or even just thinking about launching something soon, Square is hands down one of the best tools out there to help you start, run, and grow. It's not just about payments. It's about giving you time back so you can focus on what matters most. Ready to see how Square can transform your business? Visit square.com backslash go backslash EYL to learn more. That's square.com backslash go backslash EYL. Don't wait. Don't hesitate. Let Square handle the back end so you can keep pushing your vision forward.

4:02This episode is brought to you by PNC Bank. A lot of people think podcasts about work are boring. And sure, they definitely can be. But understanding a professional's routine shows us how they achieve their success little by little, day after day. It's like banking with PNC Bank. It might seem boring to save, plan, and make calculated decisions with your bank. But keeping your money boring is what helps you live a more happily fulfilled life. PNC Bank, brilliantly boring since 1865. Brilliantly boring since 1865 is a service mark of the PNC Financial Service Group, Inc. PNC Bank, National Association member, FDIC.

4:44All right, so let's talk about Intel. Intel stock was up 22 % after NVIDIA announced a$5 billion investment in a struggling chip maker. So is this the lifeline that Intel needed, or is it just a flash in the pan moment? whoop-de-doo whoop-de-doo whoop-de-doo I know for some reason people want Intel to thrive but it is an inferior chip maker if you look at the class of chip makers Nvidia's business is to make sure that they are operating at the highest level and one way to do that is to build a moat and we saw with Elon going to tell Trump, I miss you, and that's sweet. It's better to have a great connection with the president than not.

5:41So the investment into Intel is a hedge to make sure that NVIDIA stays in the lead. Also, a term that many people need to learn, mean reversion. So it got up to$32.39. It is currently at$28.76. I think it would drop back to$24 within the next month and a half um does it breathe some life into it yes but only because the united states government has investment in intel were wise enough to invest into an american investment while they for the moment have lost the investment into china so this was a hedge is intel better than nvidia no better than amd no better than other chip makers in their class no so i know some of you think that I have a personal vendetta against Intel.

6:32I don't. I think they just have lost their way. And even though NVIDIA is investing into them, it does not make them a world-class company. I agree with you. I'm going to take your quote and I'm going to say this, that everybody in your space is your competition. And I'm going to take a little different approach because I do agree with you. I think it's both a hedge and I think it's both a way to give them lifeline. We've seen this now three times over the past two years with Intel getting lifelines, first with the infrastructure bill and then being the largest allocation for that infrastructure bill.

7:08Then we saw the government decide that they're going to take 10 % of that company. And now we've seen... Good investment. Right. And now in India... That's the president. Exactly. So this is three lifelines that has been given. This is bigger than an Intel situation, when we talked about Intel and who their direct competitors were, it wasn't a GPU market we were talking about. It was a CPU market. And we talked about AMD being the new leader inside the CPU market. And so does that hurt their business? Well, if NVIDIA is helping it from an infrastructure standpoint, yeah, it could hurt AMD slightly.

7:45But what it does say is that second place spot in GPUs, that was also AMD. And so if I want you to focus on something another core piece of your business i'm going to help with your competitor to make sure that you stay in that spot and you never crash um the market share that we have which is now up to 90 i believe and so i think it's a it's a one of those things that let me hurt my competitors in terms of a and d when i'm talking about nvidia family ties there so it's really interesting i think the part and i got a lot of text messages troy is the time to invest in intel troy is in time to invest intel i know you guys saying it's dead it's on a lifeline i'm not invested in Intel.

8:20The major thing that I said about Intel, and I repeated, and I still didn't hear an answer, even with the$5 billion allocation is who is going to solve the manufacturing gap that Intel has? No one. If all these other semiconductors are downsizing to seven nanometer, five nanometer three nanometer and you're still at 10 who is helping that manufacturing gap and how fast can they make that happen i didn't hear one thing about that um perhaps that's what nvidia has now come on board for but that is going to take some time especially with a company like this and as you're trying to get better companies are already here and they're better and they're going to get better so it's a tough proposition i'm not i'm not sold on intel i won't be sold on intel there's too many opportunities too many companies that are ahead of it right now and that are going to thrive for me to say let me move money here and allocation here in hopes that it catches up tsm is better amd is better nvidia is better also we told you uh broad comm is better all comm is better um meta is better it's just a it's 30 or 40 companies that are better than intel I also told you a few months ago that they were going to invest into Intel as a hedge.

9:43And if you look from an operational standpoint, like from a brand strategy standpoint, not only do they have the best product, but one way to eliminate competition is to also invest into you in case you do well. Microsoft did this with Apple when Apple was on their deathbed as well. the difference is Jensen isn't going to take his eye off the ball and isn't going to give up a lead the way Balmer did when he took the reins over at Microsoft and the other issue you're going to work out for you is Kawhi for the record so I know everyone was like yo Intel has a chance intel is ps4 when we're going into ps6 generational type run they won't be able to catch up really quick for everyone out there who has a computer do you have an intel anything in your computer right now right and there isn't a business switch yet right like we literally watch oracle change their business structure right like we were watching dell fundamentally change their bits, the structure.

10:50Dell is better. But you can name a bunch of companies who are just outperforming at scale. And don't think that NVIDIA with investment because the bad part about a competitive investment in your business, they get to see some of the operational systems that you have in place. Don't think that they're not coming for that CPU market. It's like, you want to put the pillow over your face when you own life support. But give it to a few years, NVIDIA is going to get that CPU market as well. Yeah. Clear sign. And we saw that when they had their announcement. I think it might have been right after GTC when they had those core CPU processors.

11:32We're like, damn, they're back in this space again? Like, there's really no let up from them. So, yeah, this is one of those situations where it's like, all right, I see the competition. We're already leading here. We watched them take their lead. Let's go get some market shit over there too Ernest, what's up? Look, this episode is brought to you by Square Banking One of the things we love most is seeing neighborhood businesses level up There's this West Indian spot right in our community that started with a small takeout counter Now with Square, they've been able to expand into a full sit-down restaurant and even started catering events across the city That's the kind of growth that inspires us and it's powered by Square Square is built for all types of businesses, from the corner bagel shop that turned into a local chain, to the specialty market with thousands of unique items, to the stylist who's been holding you down for years.

12:25With Square banking, growth gets easier. You've got more control over your cash flow, access to capital right in the same system you're already using to run your business, and with a free Square savings account, you can automatically set aside a portion of your sales for upgrades, taxes, and those slow seasons, setting yourself up for long-term success. And when it's time for the next big move, Square makes it simple to get approved with a Square loan based on your actual business performance. No long waits, just quick access to capital. In fact, 88 % of businesses with Square loans report growth.

13:02So go to square.com slash go slash E-Y-L to learn more about how your business can grow with Square. That's S-Q-U-A-R-E dot com slash G-O slash E-Y-L. Block, Inc. is not a bank. Banking services provided by Square Financial Services, Inc. and Sutton Bank. Members FDIC. Loans are subject to credit approval. What if mind control is real? If you could control the behavior of anybody around you, what kind of life would you have? Can you hypnotically persuade someone to buy a car? When you look at your car, you're going to become overwhelmed with such good feelings. Can you hypnotize someone into sleeping with you?

13:43I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

14:31it up is basically like an angry woman. It's like Doris Day. Right? No, I turn into Bea Arthur. Listen to these episodes of Dear Chelsea on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Hello, hello, all my people. What's up? It's Questlove. Recently, I had the opportunity to sit down with the one and only ASAP Rocky. He reflects on his journey from Harlem roots to global icon status and discovering the hip-hop origin of his name. The ledge was on the TV. Rakim had the bucket hat Kangol join on. My pops was like, that's Rakim. That's who you named after. I just was like, damn the f*** I swear.

15:10Listen to the Questlove show on the iHeartRadio app, Apple Podcasts, or wherever you get your podcast. A new year doesn't ask us to become someone new. It invites us back home to ourselves. I'm Mike Della Rocha, host of Sacred Lessons, a space for men to pause, reflect, and heal. This year, we're talking honestly about mental health, relationships, and the patterns we're ready to release. If you're looking for clarity, connection, and healthier ways to show up in your life, Sacred Lessons is here for you. Listen to Sacred Lessons with Mike Delaroach on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

15:48This is an iHeart Podcast. Guaranteed human.